Technical Analysis

Technical analysis trends

Short Term Mid-Term Long Term

Trend Neutral Bullish Bullish
Resistance 952 952 946
Spread/Res. -0.28% -0.28% 0.40%
Spread/Supp. 7% 22% 37%
Support 889 781 692

In this case, traders would call the price level Rs. 950 a level of resistance. As you can see from
the chart below, resistance levels are also regarded as a ceiling because these price levels
prevent the market from moving prices upward.
On the other side of the coin, we have price levels that are known as support. This terminology
refers to prices on a chart that tend to act as a floor by preventing the price of an asset from
being pushed downward. As you can see from the chart below, the ability to identify a level of
support can also coincide with a good buying opportunity because this is generally the area
where market participants see good value and start to push prices higher again.
Here we will pay close attention to the price of a security as it falls toward the broader support of the
trend line because historically, this has been an area that has prevented the price of the asset from
moving substantially lower. As you can see from the chart above, a trend line can provide support for an
asset for several years. In this case, notice how the trend line propped up the price of Reliance's shares
for an extended period of time.

Price movement never touches support or resistance level twice without being able to break through so
mostly continuation of trend is expected.

RELATIVE STRENGTH INDICATOR

The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to
measure the speed and change of stock price movements. When charted, the RSI can serve as a
visual means to monitor historical and current strength or weakness in a certain market. This
measurement is based on closing prices over a specific period of time. As a momentum
oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI
is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0
may signal weaker momentum.

RSI(14)-63.91
RSI is mid-range
RSI is 63.91, RSI below 30 is considered oversold and above 70 overbought
MACD INDICATOR

As shown in the chart above, when the MACD falls below the signal line, it is a bearish signal,
which indicates that it may be time to sell. Conversely, when the MACD rises above the signal
line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to
experience upward momentum.
MACD is 11.4 and Signal Line is 10.4.
According to MACD analysis, MACD is above its center and signal Line, this is a bullish indicator.
A bullish crossover just happened and its positive signal.
When the security price diverges from the MACD. It signals the end of the current trend. Here it is not
diverging so trend is on.

When the MACD rises dramatically - that is, the shorter moving average pulls away from the longer-term
moving average - it is a signal that the security is overbought and will soon return to normal levels. Here
nothing as such is happening.

When the MACD is above zero, the short-term average is above the long-term average, which signals
upward momentum. The opposite is true when the MACD is below zero. As you can see from the chart
above, the zero line often acts as an area of support and resistance for the indicator.
MOVING AVERAGES INDICATOR
Moving averages are a popular trading tool among investors. Moving averages can be used to
help filter out the day to day noise created by other factors. MAs may be used to identify
uptrends or downtrends, and they can be a prominent indicator for detecting a shift in
momentum for a particular stock. Many traders will use moving averages for different periods of
time in conjunction with other indicators to help gauge future stock price action.

In terms of moving averages, the 200-day is currently at 740.09, the 50-day is 879.27, and the
30-day is resting at 914.51.

30 Day SMA: 914.51

Trading above 30 Day SMA since 58 days (since Sep 27, 2017)

50 Day SMA: 879.27

Trading above 50 Day SMA since 51 days (since Oct 04, 2017)

100 Day SMA: 831.71

Trading above 100 Day SMA since 476 days (since Aug 05, 2016)
 200 Day SMA: 740.09

Reliance Industries Limited (RIL) is trading above it's 200 day SMA of 740.09

Notice how the price of the asset finds support at the moving average (20 days) from July 16 to
Mar 17in when the trend is up, and how it acts as resistance when the trend is down. Most
traders will experiment with different time periods in their moving averages so that they can find
the one that works best for this specific task.

When moving average is heading upwards since Mar 17 and price is above it, security is in
uptrend. Here reliance industries Prices are way up the heading moving averages.